ANA Holdings' Profit Soared in Fiscal 2012

ANA Holdings' Profit Soared in Fiscal 2012

Japan’s ANA Holdings Inc., the parent firm of All Nippon Airways Co. (ANA), said on Tuesday that its group net profit surged 53.1 percent in fiscal 2012, which ended on March 31, from a year earlier to 43.140 billion yen ($440.20 million) despite a slump in cargo operations.

The ANA group’s revenue from overall operations grew 5.1 percent in fiscal 2012 from a year earlier to 1.484 trillion yen ($15.14 billion). Its operating profit rose 7.0 percent to a record high of 103.827 billion yen ($1.06 billion).

“Despite concerns about the impact of a global economic downturn on the airline industry, ANA performed very strongly during fiscal 2012 by improving the ANA brand and customer service, implementing the necessary reforms to our cost structure … and stimulating new demand,” ANA Holdings CEO Shinichiro Ito commented in a press release.

“We were successful in attracting more passengers both at home and abroad,” Ito said. “We also responded flexibly to minimize the number of flight cancellations due to the grounding of the Boeing 787 from January, minimizing its impact on profits.”

But the group’s revenue from international cargo operations fell 1.6 percent in fiscal 2012 from a year earlier to 86.5 billion yen ($882.65 million). Its revenue from domestic cargo operations also dropped 3.1 percent to 32.2 billion yen ($328.57 million).

ANA Holdings did not give specific profit figures for its cargo operations.

ANA Holdings said in the press release, “International cargo demand on flights from and to Japan declined substantially due to the drawn-out economic crisis in Europe and the strong yen.”

The company said that although its international cargo volume rose in fiscal 2012 despite the unfavorable business environment, its revenue from international cargo operations dropped due to “a substantial decline in unit prices.”

ANA Holdings also announced its group revenue and profit forecasts for fiscal 2013: 1.610 trillion yen ($16.43 billion) in group operating revenue, up 8.5 percent from fiscal 2012; 110.000 billion yen ($1.12 billion) in group operating profit, up 5.9 percent from fiscal 2012; 45.000 billion yen ($459.18 million) in group net profit, up 4.3 percent from fiscal 2012.